Estimation Results of Aspatial Models A Supplementary Note to "A Spatial Multivariate Count Model for Firm Location Decisions" by Chandra R. Bhat* The University of Texas at Austin Dept of Civil, Architectural and Environmental Engineering 301 E. Dean Keeton St. Stop C1761, Austin TX 78712-1172 Phone: 512-471-4535, Fax: 512-475-8744 Email: bhat@mail.utexas.edu Rajesh Paleti Parsons Brinckerhoff One Penn Plaza, Suite 200 New York, NY 10119 Phone: 512-751-5341; Fax: 212-465-5096 Email: paletir@pbworld.com Palvinder Singh Parsons Brinckerhoff 400 SW Sixth Avenue, Suite 802 Portland, OR 97204 Phone: 503-478-2873, Fax: 503-274-1412 Email: singhp@pbworld.com *corresponding author
Table 1: Estimation Results of the IFC Model Demand Intensity Agglomeration Economies/Diseconomies Total number of existing businesses per sq. mile Square of the number of existing businesses per square mile Number of existing trade businesses per sq. mile Number of existing trade employees per sq. mile/10-0.003 (-0.835) -0.023 (-4.419) 1.534 (5.297) 0.980 (6.126) -0.061 (-5.500) Sector-specific number of existing businesses per sq. mile Specialization Indices and Firm Size -0.022 (-5.001) 0.676 (7.589) -0.034 (-5.610) -0.031 (-9.426) 2.131 (11.850) 2.266 (20.331) -0.274 (-20.639) 2.118 (23.630) -0.248 (-24.020) 1.498 (26.167) -0.192 (-29.402) 0.007 (8.635) -0.179 (-9.015) 0.099 (5.374) 1.189 (4.315) 6.194 (8.343) Location Quotient of businesses / 10 0.172 (1.631) 11.016 (7.505) 10.076 (6.269) 13.044 (4.656) 2.855 (4.201) 16.402 (6.990) 7.521 (4.997) 13.081 (13.681) 1.430 (4.836) Herfindahl-Hirschman Index of businesses -4.971 (-1.827) -8.793 (-3.536) -15.073 (-7.792) -7.821 (-4.408) -11.964 (-8.676) -8.024 (-6.812) -15.298 (-10.554) -8.023 (-8.566) -10.178 (-9.680) Average size of businesses / 10 0.947 (5.365)
Human Capital Table 1 (Contd.): Estimation Results of the IFC Model Education (Base Case: % of persons 25 years or above with educational attainment less than high school) % of persons 25 years or above with high school degree /100-1.421 (-2.049) -2.092 (-3.294) -2.411 (-6.253) -3.134 (-11.545) % of persons 25 years or above with bachelor s degree or higher /100-3.383 (-2.559) -3.652 (-4.359) 2.432 (6.349) 6.224 (14.919) 2.503 (1.964) Rate of unemployment /100-30.207 (-2.979) -15.946 (-3.148) -9.559 (-1.740) -19.481 (-4.733) Average wage per job (in 10,000s of dollars) 0.297 (2.574) 0.312 (4.857) Fiscal Conditions Property tax rates -1.237 (-2.447) -1.393 (-3.693) -1.921 (-4.391) -1.418 (-4.686) -1.952 (-7.192) -1.459 (-5.869) -1.989 (-11.688) -0.622 (-3.663) -1.365 (-10.163) -2.122 (-5.463) County-Specific Factors Harris county, 0 otherwise -3.011 (-5.250) 4.721 (7.229) Dallas county, 0 otherwise 5.781 (7.379) 7.331 (10.978) Tarrant county, 0 otherwise 4.642 (9.386) 3.500 (6.890) 2.698 (4.817) 7.406 (12.303) 3.701 (16.041) 2.549 (5.654) 3.393 (9.330) Bexar county, 0 otherwise -1.341 (-6.946) Travis county, 0 otherwise -1.784 (-4.144)
Table 1 (Contd.): Estimation Results of the IFC Model Supply Tipping Point (Threshold) Effects Vector Elements 1 2-0.172 (-1.963) -0.343 (-3.250) 3 4-0.409 (-3.145) 5 6 7 8 9-0.666 (-4.484) -0.802 (-4.100) -1.154 (-5.551) 10 0.363 (8.729) -0.132 (-1.790) -0.246 (-2.273) -0.447 (-3.421) -0.721 (-5.224) -0.854 (-5.265) -0.289 (-6.412) -0.534 (-3.642) -0.494 (-7.648) -0.296 (-2.696) 0.124 (3.174) -0.136 (-4.081) -0.095 (-3.804) -0.707 (-3.800) -0.902 (-4.195) -0.767 (-9.527) -1.010 (-10.937) 11 12 13 14-3.821 (-10.977) -0.964 (-5.231) -1.157 (-5.863) -0.221 (-6.361) -0.234 (-13.030) -0.448 (-11.537) -0.549 (-10.760) -0.443 (-8.633) -1.244 (-11.378) -0.539 (-3.891) -0.830 (-5.327) -0.163 (-3.175) -0.408 (-6.771) -1.112 (-6.628) -1.334 (-7.240) -1.529 (-7.487) -0.555 (-7.548)
Table 1 (Contd.): Estimation Results of the IFC Model Vector Elements Constant Agglomeration Economies/Diseconomies -3.802 (-3.601) -4.071 (-6.120) -9.325 (-5.137) -4.641 (-8.323) -2.763 (-5.120) -3.815 (-9.489) -6.652 (-12.825) -3.755 (-7.781) -5.280 (-15.295) -7.746 (-19.647) -7.241 (-8.588) Residential population per sq. mile / 100-0.030 (-2.189) -0.060 (-3.079) -0.074 (-5.750) -0.046 (-2.364) Residential population change between 2000 and 2007 (in 10,000s) -0.021 (-4.011) -0.013 (-5.027) -0.032 (-8.642) -0.023 (-3.855) -0.038 (-8.012) Fiscal Conditions Natural logarithmic of government expenditure (in dollars) 0.307 (6.513) 0.289 (9.856) 0.247 (7.297) 0.326 (14.341) 0.208 (8.382) 0.306 (15.114) 0.278 (13.262) 0.145 (7.827) 0.328 (20.013) 0.453 (27.746) 0.400 (11.869) Transportation Infrastructure and Land Development Characteristics Natural logarithmic of length (in miles) of roadway network Dummy Variable; 1 if Interstate roadway passes through the county, 0 otherwise Number of airports in each county /10 Metropolitan status (Base Case: County is a non-metropolitan area and also non-adjacent to metropolitan county Dummy Variable; 1 if county is metropolitan, 0 otherwise Dummy Variable; 1 if county is a non-metropolitan but adjacent to a metropolitan county, 0 otherwise Natural logarithmic of land area (in sq. miles) 0.1233 (2.5751) 0.067 (2.542) 0.217 (4.248) 0.275 (2.665) 0.064 (1.657) 0.146 (4.112) 0.073 (2.942) 0.095 (2.995) 0.211 (7.674) 0.116 (6.925) 0.053 (2.722) 0.081 (5.331) 0.117 (8.657) 0.221 (5.799) 0.052 (0.644) 0.465 (3.500) 0.233 (1.909) 0.504 (2.864) 0.112 (2.767) 0.217 (6.767) 0.323 (5.228) 0.223 (5.185) 0.159 (3.924)
Table 2a: Estimation Results of the JFC Model Demand Intensity Agglomeration Economies/Diseconomies Total number of existing businesses per sq. mile 1.002 (6.285) 0.671 (7.536) 2.283 (20.604) 2.096 (24.118) 1.500 (25.880) Square of the number of existing businesses per square mile -0.002 (-0.699) -0.023 (-4.381) -0.062 (-5.624) -0.024 (-5.720) -0.034 (-5.479) -0.029 (-9.248) -0.275 (-20.904) -0.246 (-24.474) -0.193 (-29.548) 0.006 (7.978) -0.192 (-9.064) Number of existing trade businesses per sq. mile 1.543 (5.361) 2.025 (11.592) Number of existing trade employees per sq. mile/10 0.097 (5.236) Sector-specific number of existing businesses per sq. mile 1.320 (4.920) 6.774 (8.698) Specialization Indices and Firm Size Location Quotient of businesses / 10 0.187 (1.897) 12.265 (8.141) 10.906 (6.654) 12.743 (4.578) 2.993 (4.226) 16.887 (7.291) 7.125 (4.779) 12.897 (13.636) 1.433 (4.679) Herfindahl-Hirschman Index of businesses -3.095 (-1.580) -8.419 (-3.657) -14.814 (-7.672) -7.099 (-4.059) -12.497 (-8.925) -7.700 (-6.604) -15.361 (-10.555) -8.465 (-8.221) -10.347 (-9.416) Average size of businesses / 10 0.917 (5.257)
Human Capital Table 2a (Contd.): Estimation Results of the JFC Model Education (Base Case: % of persons 25 years or above with educational attainment less than high school) % of persons 25 years or above with high school degree /100-1.558 (-2.254) -2.072 (-3.299) -2.776 (-7.280) -2.978 (-11.243) % of persons 25 years or above with bachelor s degree or higher /100-3.610 (-2.757) -3.526 (-4.251) 2.599 (6.687) 7.873 (19.122) 2.315 (1.804) Rate of unemployment /100-30.779 (-3.082) -16.344 (-3.277) -9.671 (-1.772) -19.470 (-4.768) Average wage per job (in 10,000s of dollars) 0.247 (2.169) 0.289 (4.503) Fiscal Conditions Property tax rates -1.345 (-2.756) -1.178 (-3.139) -1.956 (-4.418) -1.376 (-4.558) -2.026 (-7.449) -1.474 (-5.911) -1.960 (-11.524) -0.620 (-3.673) -1.257 (-9.152) -2.096 (-5.289) County-Specific Factors Harris county, 0 otherwise -2.789 (-5.201) 4.901 (7.837) Dallas county, 0 otherwise 5.898 (7.988) 7.161 (10.572) Tarrant county, 0 otherwise 4.694 (9.380) 3.376 (6.643) 2.675 (4.887) 7.477 (12.486) 3.840 (16.407) 2.868 (5.353) 3.343 (8.837) Bexar county, 0 otherwise Travis county, 0 otherwise -1.379 (-7.171) -1.496 (-3.492)
Table 2a (Contd.): Estimation Results of the JFC Model Supply Tipping Point (Threshold) Effects Vector Elements 1 2-0.164 (-1.856) -0.326 (-3.062) 3 4-0.403 (-3.078) 5 6 7 8 9-0.663 (-4.483) -0.796 (-4.040) -1.152 (-5.535) 10 0.355 (8.519) -0.146 (-2.019) -0.269 (-2.532) -0.480 (-3.766) -0.756 (-5.614) -0.899 (-5.709) -0.285 (-6.294) -0.507 (-3.427) -0.488 (-7.519) -0.269 (-2.333) 0.119 (3.053) -0.136 (-4.081) -0.071 (-2.708) -0.678 (-3.619) -0.873 (-4.037) -0.760 (-9.465) -0.999 (-10.811) 11 12 13 14-3.877 (-11.380) -1.019 (-5.702) -1.209 (-6.229) -0.225 (-6.625) -0.234 (-13.284) -0.447(- 11.517) -0.545(- 10.618) -0.446 (-8.690) -1.232 (-11.291) -0.516 (-3.587) -0.799 (-4.912) -0.144 (-2.867) -0.400 (-6.368) -1.085 (-6.222) -1.305 (-6.822) -1.498 (-7.080) -0.542 (-7.151)
Table 2a (Contd.): Estimation Results of the JFC Model Vector Elements Constant Agglomeration Economies/Diseconomies -3.902 (-3.911) -4.388 (-7.119) -9.243 (-5.194) -4.595 (-8.456) -2.790 (-5.176) -3.782 (-9.495) -6.790 (-12.914) -3.284 (-7.323) -5.074 (-14.645) -8.472 (-21.326) -7.176 (-8.166) Residential population per sq. mile / 100-0.036 (-3.053) -0.064 (-3.441) -0.073 (-5.854) -0.050 (-2.068) Residential population change between 2000 and 2007 (in 10,000s) -0.019 (-3.845) -0.014 (-5.528) -0.031 (-8.839) -0.021 (-2.988) -0.037 (-7.581) Fiscal Conditions Natural logarithmic of government expenditure (in dollars) 0.312 (7.006) 0.303 (10.438) 0.243 (7.282) 0.324 (14.456) 0.206 (8.507) 0.309 (15.413) 0.280 (13.16) 0.137 (7.812) 0.330 (18.052) 0.481 (27.888) 0.399 (11.435) Transportation Infrastructure and Land Development Characteristics Natural logarithmic of length (in miles) of roadway network Dummy Variable; 1 if Interstate roadway passes through the county, 0 otherwise Number of airports in each county /10 Metropolitan status (Base Case: County is a non metropolitan area and also non-adjacent to metropolitan county Dummy Variable; 1 if county is metropolitan, 0 otherwise Dummy Variable; 1 if county is a non-metropolitan but adjacent to a metropolitan county, 0 otherwise Natural logarithmic of land area (in sq. miles) 0.115 (2.383) 0.071 (2.731) 0.204 (4.027) 0.283 (2.696) 0.063 (1.620) 0.152 (4.273) 0.063 (2.595) 0.099 (3.069) 0.197 (7.865) 0.117 (6.663) 0.213 (5.669) 0.049 (2.559) 0.079 (5.569) 0.118 (8.465) 0.053 (0.648) 0.452 (3.439) 0.235 (1.936) 0.518 (2.966) 0.115 (2.849) 0.220 (6.849) 0.332 (5.344) 0.207 (5.102) 0.124 (2.762)
Table 2b: Estimation Results of the JFC Model: Cross-Sector Correlation Matrix Agriculture Construction 0.145 (1.978) Manufacturing 0.000 Trade 0.000 Transportation 0.000 Services 0.155 (1.838) Finance 0.000 Health 0.000 Hospitality 0.000 0.208 (2.592) 0.479 (6.992) 0.162 (2.356) 0.437 (6.181) 0.334 (4.384) 0.299 (3.317) 0.191 (2.296) 0.299 (4.056) 0.000 0.229 (2.967) 0.214 (2.720) 0.175 (2.171) 0.290 (3.977) 0.176 (2.321) 0.453 (7.155) 0.333 (4.867) 0.283 (3.508) 0.285 (3.676) Arts 0.000 0.000 0.000 0.000 Administration 0.000 0.324 (4.557) 0.222 (2.587) 0.368 (5.438) 0.226 (2.961) 0.146 (1.675) 0.000 0.000 0.177 (2.006) 0.000 0.281 (3.417) 0.335 (4.816) 0.173 (2.124) 0.376 (5.160) 0.137 (1.527) 0.127 (1.513) 0.000 0.000 0.000 0.000 0.343 (4.974) 0.230 (2.503) 0.283 (3.715) 0.365 (5.473) 0.000